FOSTER CITY, Calif.—Are connected devices the payments platform of the future?
A new survey by Visa indicates that more than 80% of consumers are interested in using connected devices to make payments, and 75% already own at least one connected device.
Visa's study, a collaboration with Pymnts.com, shows the average American owns 4.4 connected devices: 47% own gaming consoles, 41% use activity trackers, 15% have smartwatches, 14% use voice-controlled assistance (such as Amazon Echo), and the remainder use connected thermostats and virtual reality headsets.
“Even though Americans are rapidly adopting connected devices, safety remains a top priority for financial transactions—76% of respondents said data privacy was a concern, and 71% were worried about data security,” said Bill Hardekopf, CEO of LowCards.com.
Consumers trust banks and card issuers over retailers when it comes to making payments through a connected device, the report shows—77% said they wanted their financial institution to enable new payment options through connected devices.
“Shoppers with multiple connected devices are more likely to make purchases across more categories than those with one connected device. Sixty-six percent of participants believed connected device payments could streamline basic shopping experiences, like buying clothes or home improvement supplies,” said Hardekopf.